Foreclosure Cases Jump 12.2% Year-Over-Year as U.S. Retail Sales Rise 0.2% in June

According to LegalShield's Consumer Stress Legal Index released in June, the Foreclosure Index climbed to its highest level since March 2020, rising 12.2% year-over-year, while the Bankruptcy Index jumped 28.7% in the same period. The composite Consumer Stress Legal Index increased 9.4% compared with Q2 2025.

The data highlight a widening K-shaped economy, with U.S. retail sales rising 0.2% in June according to the Commerce Department, masking mounting financial stress among lower-income households. Matt Layton, LegalShield's Senior Vice President of Consumer Analytics, told Kitco News that rising foreclosure and bankruptcy inquiries suggest deteriorating conditions across all income levels and regions despite resilient headline spending.